Financial Performance - Total bets for the fiscal year ended March 31, 2021, amounted to ¥475,163 million, a decrease of 35.2% from ¥732,862 million in the previous year[9] - Revenue for the fiscal year was ¥98,602 million, down 30.8% from ¥142,483 million in the previous year[9] - Operating profit for the year was ¥6,728 million, a significant decline from ¥21,514 million in the previous year, representing a decrease of 68.8%[9] - Net profit for the year was ¥2,351 million, compared to ¥12,747 million in the previous year, reflecting a decrease of 81.5%[9] - Basic earnings per share for the year were ¥3.1, down from ¥16.6 in the previous year[9] - The company reported an EBITDA of ¥16,781 million, down from ¥31,151 million in the previous year, a decline of 46.1%[9] - Total comprehensive income for the year was ¥3,253 million, down from ¥11,567 million, a decrease of 71.9%[177] - The company reported financing expenses of ¥2,672 million, an increase from ¥2,469 million in the previous year[176] - The company recognized a fair value gain of ¥526 million on financial assets, compared to a loss of ¥921 million in the previous year[177] Assets and Liabilities - Non-current assets totaled ¥209,283 million, a decrease from ¥221,441 million in the previous year[10] - Current assets increased to ¥91,790 million from ¥55,798 million in the previous year, showing a growth of 64.4%[10] - Total liabilities decreased to ¥169,101 million from ¥182,467 million in the previous year, indicating a reduction of 7.3%[10] - Total assets increased to ¥301,073 million in 2021 from ¥277,239 million in 2020, representing an increase of 8.6%[178] - Total liabilities increased to ¥169,101 million in 2021 from ¥142,507 million in 2020, an increase of 18.7%[179] - Shareholders' equity decreased to ¥131,972 million in 2021 from ¥134,732 million in 2020, a decline of 2.0%[179] Cash Flow and Investments - Net cash generated from operating activities was 29,441 million JPY (approximately 2,067 million HKD) for the year ended March 31, 2021, compared to 30,071 million JPY (approximately 2,143 million HKD) for the previous year[30] - Net cash used in investing activities was (1,188) million JPY (approximately (83) million HKD) for the year ended March 31, 2021, a significant decrease from (25,951) million JPY (approximately (1,850) million HKD) in the previous year[30] - Cash and cash equivalents increased to ¥74,661 million in 2021, compared to ¥41,810 million in 2020, reflecting an increase of 78.5%[178] - The company raised bank loans amounting to ¥33,484 million, a substantial increase from ¥14,633 million in the previous year, indicating a growth of 128.5%[182] Business Operations and Market Conditions - Approximately 97% of gaming halls were forced to close due to COVID-19, impacting overall business operations[16] - The company anticipates a moderate recovery in the Japanese pachinko business post-June 2021, but does not expect to return to pre-pandemic levels[16] - Customer visits have recovered to approximately 70% of pre-COVID-19 levels, with a slower return due to the demographic of the customer base being primarily elderly[48] - The company continues to reform Japanese pachinko machines to make them easily accessible as everyday entertainment, aiming to create higher value[47] Corporate Governance - The company has adopted corporate governance principles to enhance shareholder value and has complied with the relevant codes and regulations[79] - The board consists of nine directors, including one executive director, three non-executive directors, and five independent non-executive directors[88] - The audit committee held 16 meetings during the reporting period, with all members attending all meetings[92] - The company has established three committees: the audit committee, the remuneration committee, and the nomination committee, each with specific oversight responsibilities[90] Risk Management - The company faces various market risks, including foreign currency risk, credit risk, and liquidity risk, with a focus on minimizing potential adverse impacts on financial performance[41] - The company has implemented policies to ensure sales are made to customers with appropriate credit records, significantly reducing credit risk[44] - The company regularly monitors its current and expected liquidity needs to maintain sufficient cash reserves and access to committed financing from major financial institutions[45] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable growth by integrating environmental, social, and governance (ESG) concepts into its operations[51] - The company recognizes the potential positive impact of its business activities on local communities, particularly in preventing cognitive decline through participation in pachinko games[59] - The company plans to publish its 2020 ESG report within three months after the annual report[62] Shareholder Information - The company declared a final dividend of 2 JPY per ordinary share, amounting to approximately 1,505 million JPY (about 106 million HKD) based on 752,701,296 shares issued as of June 7, 2021[134] - The company maintained a public float of approximately 20.9%, which is below the required 25% as per the listing rules[138] - The company’s major shareholders include Sato Yoji with a total of 444,805,120 shares, representing 59.09% of the total shares[140] Strategic Plans - The company aims to leverage its position as a leading player in the pachinko industry by focusing on multi-store development and low-cost operations to ensure long-term profitability[67] - The strategy includes opening new standard game halls and acquiring other pachinko operators to increase the number of game halls[71] - The company plans to standardize game hall layouts and the number of gaming machines to reduce initial investment costs and construction time[72]
DYNAM JAPAN(06889) - 2021 - 年度财报